Q3 2026 Shriram Finance Ltd Earnings Call Transcript
Key Points
- Shriram Finance Ltd (BOM:511218) reported a strong disbursement growth of 14.17% year-over-year, reaching INR48,645 crores in Q3 FY26.
- The company's asset under management (AUM) grew by 14.63% over the previous year, standing at INR2,91,709.03 crores.
- Net interest income increased by 16.17% year-over-year, with a net interest margin improvement to 8.58% in Q3 FY26.
- Profit after tax grew by 21.21% compared to Q3 FY25, excluding a one-time gain from the sale of a stake in a subsidiary.
- The company received rating upgrades from CARE and positive outlooks from CRISIL and ICRA, with S&P upgrading its rating to BBB-.
- The cost-to-income ratio increased to 29.66% in Q3 FY26 from 28.59% in Q3 FY25, partly due to increased gratuity and long-term compensation expenses.
- The construction equipment segment experienced a decline, with sales decreasing by 14% compared to the previous year.
- There is a cautious outlook on heavy commercial vehicle growth due to reduced infrastructure spending.
- Employee expenses increased significantly, partly due to incentive schemes, despite a reduction in employee count.
- The MSME segment showed a deceleration in growth pace, with concerns about potential impacts from US tariffs.
Ladies and gentlemen, good day, and welcome to Shriram Finance Limited Q3 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Umesh Revankar, Executive Vice Chairman for his opening remarks. Thank you, and over to you, sir.
Thank you. Good evening friends from India and Asia. A warm welcome to all of you. Greetings also to those who have joined the call from Western part of the world. To present our quarter three FY26 earnings call today, I have with me Managing Director and CEO, Mr. Parag Sharma, S. Sunder, Joint managing Director and CFO; and Sanjay Mundra, who is our Investor Relationship Head. It has been a good Q3 quarter -- third quarter for us, for Shriram under the current circumstances. I'll just broadly go through the economic indicators. And as all of you know, that India has been growing well.
And that 8.2% GDP growth has back on the 7.8% GDP growth the previous quarter,
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